Gifts in kind, often called “in-kind donations,” are a type of charitable donation in which, rather than giving cash to a qualifying nonprofit NGO with which to purchase needed supplies and services, the goods and services are donated directly.
In-kind donations are distinguished from cash or stock shares gifts. While some nonprofit observers have debated the advantages of in-kind donations over giving cash, others have argued for the disadvantages of gifts in kind, particularly in the context of disaster relief. For a summary discussion, go to Wikipedia: Gifts in kind
Whatever the pros and cons, the annual volume of entering in-kind donations being made to nonprofits is on the rise.
So how does a nonprofit properly go about entering in-kind donations in QuickBooks?
Cash-strapped businesses must make every dollar count. Excess inventory is a drain on resources as is idle unbilled time.
Increasingly companies are turning to barter as a way to boost sales by converting excess goods and capacity into something that can be used for business. And they’re doing it while saving precious cash for those things that require money to buy.
Different forms of bartering have been around throughout history. In its purest form, bartering is a way to re-distribute resources for the good of all parties involved.
CPA Lisa Aldrich explains some of the tactics and caveats, and the advantage of using a good “barter exchange” –
For one, you need to find someone who has what you want and is willing to trade it for what you have. And you have to agree on how much of each is fair. Direct barter trades are notoriously unequal.
With the growth of the internet, barter exchanges have blossomed worldwide. In 2010, there were estimated to be over 450,000 businesses using barter exchanges, with approximately 400 barter companies worldwide.
As small business owners we all have different needs. The bookkeeping systems we select may vary, the specific reports that we access to make crucial business decisions may vary, even the frequency of our accounting may be vary. But at the foundation of it all is what we call a Chart Of Accounts. And your chart of accounts is specific to your business’ needs and, set up correctly, it often will be different from that of other companies.
So What is the Chart of Accounts?
Our business dictionary defines the chart of accounts as a “System of accounting records developed by an organization to be compatible with its particular financial structure, and in agreement with the amount of detail required in its financial statements.”
Many businesses are effectively endangering their cash flow management by using cash basis accounting as their primary method of tracking their day to day financial dealings. This can develop into a serious problem. Cash basis accounting doesn’t comply with GAAP principles. Source: www.accountingdepartment.com If you’re surprised to learn that, keep reading. Even though there are […]
A new infographic demonstrates the humble beginnings of modern accounting, beginning in 1494 when Luca Pacioli first described an emerging system of debits, credits, journals, and ledgers. It charts the difference between how accounting was done before accounting software programs and after accounting software programs. VisiCalc and QuickBooks changed the industry immediately upon their introduction. […]
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A very big congratulations to our client Lead Research Group! Lead Research Group Tops the Annual Inc. 500 List of Fastest Growing Private Companies, AGAIN! HUNTINGTON BEACH, Calif.–(BUSINESS WIRE)–Inc. Magazine has named Lead Research Group (LRG), a marketing and advertising agency located in Orange County, Ca., 23rd on its annual list of the fastest growing privately-held companies in the […]
Cloud based Financial Project Manager Software applications have enabled businesses to take advantage of software options that in years previously would have costs 1000s of dollars to purchase and load on even a single PC. Take Project Manager Software, for instance… Up until 2006, our options for project manager applications were few and expensive. Microsoft […]
What concerns small business operators above all? Our consultations with them indicate it’s a relative measure of insecurity about what the near future holds. Well, lacking a small business fortune teller, if one existed, here’s a peek at what 2014 might look like, reading our own tea leaves: How About Help from Lawmakers? We expect […]
A “Sales Lead” is a new contact that you are in the process of selling products or services to, but who has not yet become a full-fledged client. You must be able to track the prospect’s contact info and a list of steps that should be completed as a part of your sales closure. When […]
There’s much at stake for your company. Ask your attorney these ten questions so you don’t come up short when it counts. You’re a small company owner, not a business law expert. Still, you’ll need to be familiar with legal compliance matters, intellectual property regulations, taxes, business liability, and a myriad of other law issues […]
QuickBooks is a powerful software technology that many small business managers and owners depend on to maintain their books current. But are you really deriving the maximum efficiency from your software investment? Here are seven tips that will improve QuickBooks efficiency and maximize your optimal use of of the software. Improve QuickBooks Efficiency Tip #1 – Utilize your […]
Launching a small business enterprise is always a challenge, but keeping it successful and growing it is the real hurdle. An huge number of new company startups struggle to turn a profit and only a small percentage will persevere to go on to become bigger and more successful. So what steps can small business owners and managers take to […]
Late last year a post by Angie Mohr on Intuit’s Small Biz Blog attempted to differentiate between an accountant and a bookkeeper. It helps to know the difference when you decide what is actually needed. Especially if you want to get good value pricing return on service. “Many times it depends on the industry and […]
Launching a new enterprise is a formidable and hectic time. There is much to be accomplished and limited time to accomplish it. If you intend to have employees, there are a variety of federal and state forms and applications that will need to be completed to get your new business up and running. Employer […]
Intuit is really pushing its QuickBooks Online these days, but it isn’t a product that most financial pros are confident with. For many QuickBooks pros, using QuickBooks Desktop (for Windows, Mac is another story) for years, this is where our comfort zone is. Intuit keeps attempting to push us out of that comfort zone. They […]
Note: Don’t miss the upcoming Cloud9 Real Time 2013 Summit in San Diego Bay on August 14-16 to get up to speed fast on all things related to accounting and cloud-computing. In recent times hurricanes, wildfires, earthquakes, and electrical blackouts caused company owners and accounting pros to reflect on disaster recovery and cloud computing. How could […]
Remember the classic joke about the tax lawyer BAR multiple choice test question in the Tom Cruise movie, The Firm? … The difference between legal tax avoidance and illegal tax evasion is … a) Ten years in Leavenworth b) A smart tax attorney c) Whatever the IRS says it is d) All of the above […]
Recently a prospective client asked us about ‘job costing’ in QuickBooks (smart client). She was planning on buying the QuickBooks Premier Contractor (she’s in the interior design and remodeling business) and converting the existing accounting systems. Her plan is to primarily use QuickBooks for job costing and wanted recommendations that might help her transition smoothly. There is no better […]
Gifts in kind, often called “in-kind donations,” are a type of charitable donation in which, rather than giving cash to a qualifying nonprofit NGO with which to purchase needed supplies and services, the goods and services are donated directly.
So What is the Chart of Accounts?
